Search found 9043 matches

by Kevin M
Wed Jan 18, 2012 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Looking to add a taxable account
Replies: 28
Views: 1845

Re: Looking to add a taxable account

For some reason I thought they separated retirement and brokerage services. You can have mutual fund and brokerage accounts in a taxable account and/or in a retirement account. That is, "retirement" and "brokerage" are not antonyms. To illustrate, it looks kind of like this: IRA - mutual fund accou...
by Kevin M
Wed Jan 18, 2012 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Looking to add a taxable account
Replies: 28
Views: 1845

Re: Looking to add a taxable account

1. What is the differences between a Vanguard and a Fidelity brokerage account for my taxable money? Since you seem primarily interested in mutual funds, you would not open a brokerage account at Vanguard, but a mutual fund account. Vanguard uses separate accounts for stocks/ETFs (brokerage) and mu...
by Kevin M
Wed Jan 18, 2012 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: Looking to add a taxable account
Replies: 28
Views: 1845

Re: Looking to add a taxable account

2. At Fidelity, are FSIIX and FSTMX comparable to VTIAX and VTSAX respectively? FISIIX tracks EAFE, and thus does not include emerging markets. VTIAX currently includes about 25% emerging markets. However, from a post I saw recently, I see that FIDO now has an all world ex-US spartan fund, FSGUX, w...
by Kevin M
Wed Jan 18, 2012 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Am I calculating my taxes correctly?
Replies: 39
Views: 2525

Re: Am I calculating my taxes correctly?

If you start using the free version of TurboTax (not TaxCaster), as already recommended, it will ask you questions and fill in the forms properly based on your answers. So, for example, it will ask you questions to properly determine filing status (single, not head of household), IRA deductibility (...
by Kevin M
Wed Jan 18, 2012 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio AA help @30
Replies: 15
Views: 1576

Re: Portfolio AA help @30

There's only so much you can do to minimize gains. You already know about using losses to offset the gains, which is the big one, but apparently you don't have enough losses to offset all gains. You could wait for the next bear market or correction to do some of your selling, but if that occurs afte...
by Kevin M
Tue Jan 17, 2012 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale questions
Replies: 16
Views: 576

Re: Wash sale questions

Do you hold your emergency cash in your tax-advantaged accounts in taxable bonds and convert them to stocks when you pull out cash from your index funds in your taxable account? Or do you hold your emergency cash in a bank? Not sure that answers from a few posters here on what they do will help you...
by Kevin M
Tue Jan 17, 2012 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Short term treasuries vs. bond index for emergency funds
Replies: 15
Views: 2173

Re: Short term treasuries vs. bond index for emergency funds

The SEC yield on VG short-term treasury fund (VFISX) is 0.22%, and the most recent yield at auction for a 1 year Tbill was 0.107%. Wouldn't it be better to just use an FDIC insured, online savings account yielding 0.8% or more? Or for an even better yield, supplement with some Ally 5-year CDs for mo...
by Kevin M
Tue Jan 17, 2012 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Backdoor Roth for 2011
Replies: 5
Views: 551

Re: Question on Backdoor Roth for 2011

Regarding the 30 day wait, Vanguard's "IRA Recharacterization Kit" states the following: Reconverting previously recharacterized conversion assets Based on IRS regulations, once you recharacterize a conversion, you cannot convert those assets back to a Roth IRA until the later of: • The beginning o...
by Kevin M
Mon Jan 16, 2012 11:29 pm
Forum: Investing - Theory, News & General
Topic: People say "don't buy bond funds now". Market timing?
Replies: 59
Views: 7974

Re: People say "don't buy bond funds now". Market timing?

Ok I have to admit you guys are freaking me out a bit. I am about to invest a lump sum of money and had my sights set on the Three fund approach VTSAX, VBTLX, and VTIAX. Also have thought about adding in TIPS. After all this reading with bonds I am now not sure at all about this being a good approa...
by Kevin M
Mon Jan 16, 2012 11:06 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs in IRA -- Too Complicated?
Replies: 18
Views: 1808

Re: ETFs in IRA -- Too Complicated?

If the goal is to use index mutual funds, then it would be preferable to transfer the IRA from Fidelity to Vanguard. Fidelity will charge a fee too on the way out, though, but it is one time. They don't charge a fee unless you close the account--at least that's the way it's worked for me. It may be...
by Kevin M
Mon Jan 16, 2012 8:28 pm
Forum: Investing - Theory, News & General
Topic: People say "don't buy bond funds now". Market timing?
Replies: 59
Views: 7974

Re: People say "don't buy bond funds now". Market timing?

... but as long as I have stocks, cutting risk in the bond portfolio is like cutting calories by ordering a diet Coke with your Hardee's Triple Thickburger. Good point, but the lower your stock allocation, the less true this is. Also less true the more term and credit risk in your bonds. Going from...
by Kevin M
Mon Jan 16, 2012 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Restructuring accounts for tax efficiency
Replies: 3
Views: 465

Re: Restructuring accounts for tax efficiency

However, I may buy a house this Fall and thus would like to keep ~30K in something no riskier than bonds. I would keep the house down payment money, expected to be used in less than a year, in an FDIC insured account of some sort. Any of the funds in your taxable accounts (except the cash) could lo...
by Kevin M
Mon Jan 16, 2012 6:17 pm
Forum: Investing - Theory, News & General
Topic: People say "don't buy bond funds now". Market timing?
Replies: 59
Views: 7974

Re: People say "don't buy bond funds now". Market timing?

Dandy, I think you put it well. I agree.

Kevin
by Kevin M
Mon Jan 16, 2012 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio AA help @30
Replies: 15
Views: 1576

Re: Portfolio AA help @30

I also realize that I have some Vanguard funds in my taxable account in a Wells Fargo brokerage account, but if I wanted to have those same funds in a Vanguard taxable account that I already have (basically transferring from Wells Fargo brokerage account to Vanguard account), would I still incur ta...
by Kevin M
Mon Jan 16, 2012 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs in IRA -- Too Complicated?
Replies: 18
Views: 1808

Re: ETFs in IRA -- Too Complicated?

Have you considered just transferring your IRA to Vanguard?
by Kevin M
Mon Jan 16, 2012 4:06 pm
Forum: Investing - Theory, News & General
Topic: People say "don't buy bond funds now". Market timing?
Replies: 59
Views: 7974

Re: People say "don't buy bond funds now". Market timing?

So, to summarize what 3 of our highly respected, Boglehead authors and financial advisors are doing: Bill Bernstein: sticking with short-term treasuries (IIRC) Larry Swedroe: tax-advantaged in a short-term bond fund, even though he says he prefers TIPS Alan Roth: keeping most of his fixed income in ...
by Kevin M
Mon Jan 16, 2012 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale? - Vanguard FTSE to Vanguard Total International
Replies: 29
Views: 2348

Re: Wash Sale? - Vanguard FTSE to Vanguard Total Internation

I use a very simple rule, which has never been tested as far as I know. If the ticker symbol is not the same it is not “substantially identical” A simple argument for this would be “why would Vanguard go to the trouble of registering and maintaining the two funds if they were identical? Why not jus...
by Kevin M
Mon Jan 16, 2012 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with taxable account
Replies: 48
Views: 2700

Re: Help needed with taxable account

... but still plan to talk with vanguard about identifying long-term losses ... If you're talking about identifying specific shares with a loss, I don't think Vanguard will help you with that. For shares bought before 2012, all they keep track of in their system is average cost, so the cost basis n...
by Kevin M
Mon Jan 16, 2012 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with taxable account
Replies: 48
Views: 2700

Re: Help needed with taxable account

sieber wrote: If one uses specific ident. on one fund, do you need to use it on all the funds?
No.
by Kevin M
Sun Jan 15, 2012 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Switching Vanguard funds within a Roth IRA
Replies: 14
Views: 8897

Re: Switching Vanguard funds within a Roth IRA

Wow, thanks everyone for the input and advice! I really do appreciate it. Let me explain what my long-term plans are a little more fully, and you all can let me know if I'm way off base or not. I do really like the asset allocation strategies followed in the target funds. I noticed, however, that n...
by Kevin M
Sun Jan 15, 2012 5:03 pm
Forum: Investing - Theory, News & General
Topic: What cost basis method did you select at Vanguard and why?
Replies: 46
Views: 8066

Re: What cost basis method did you select at Vanguard and wh

I am still confused as to why anyone is making this selection now if you only use mutual funds. Did you buy shares last week that you are going to sell this week? If yes, then you will need to make a basis selection. I haven't bought any mutual fund shares in 2012, and I am not planning on selling ...
by Kevin M
Sun Jan 15, 2012 3:46 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing - Question
Replies: 8
Views: 794

Re: Rebalancing - Question

There is no right answer. You are using a variation of the rebalancing bands method, which many use. Others prefer a time interval method (e.g., once every year or two), and some combine them (e.g., check every month/quarter/year, but only rebalance if a trigger threshold has been exceeded). Also, i...
by Kevin M
Sun Jan 15, 2012 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Has anyone been contacted by the IRS regarding TLH?
Replies: 21
Views: 2208

Re: Has anyone been contacted by the IRS regarding TLH?

retiredjg wrote:This is the first I've heard of new reporting requirements. Can someone give a summary or point to a source that is easy to understand?
You could start here:
https://personal.vanguard.com/us/insigh ... s-01032012
by Kevin M
Sun Jan 15, 2012 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Advice
Replies: 26
Views: 1814

Re: Real Estate Advice

I also have adult children who still are renting, and although tempted by current low interest rates and decreased home prices, think that they probably are better off renting at this point. Does your daughter really have certainty that she'll want to continue living where she is living now? As othe...
by Kevin M
Sun Jan 15, 2012 3:18 pm
Forum: Investing - Theory, News & General
Topic: Improved Net Worth by Age [and plot]
Replies: 250
Views: 45366

Re: Improved Net Worth by Age [and plot]

I don't mind popping in a quick estimate of my net worth, but I'm too lazy to figure out SS benefits right now, or look up previous estimates I've done. Also, I don't consider future SS benefits part of my net worth. If I die, my heirs inherit my savings and investments, but not my SS (no living spo...
by Kevin M
Sun Jan 15, 2012 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help w/ 401k options
Replies: 14
Views: 1326

Re: Help w/ 401k options

I believe there is a separate emerging markets fund, but it is managed, not an index. Should that concern me? If you want emerging markets in your portfolio (I want them in mine), then you can either use the actively managed fund in your 401k, or you can use an emerging markets index fund in an IRA...
by Kevin M
Sun Jan 15, 2012 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Has anyone been contacted by the IRS regarding TLH?
Replies: 21
Views: 2208

Re: Has anyone been contacted by the IRS regarding TLH?

The IRS is not concerned with totally legal TLH, but when it comes to wash sales, in the future sniffing out wash sales will be the responsibility of the brokers under the new basis reporting requirements. Vanguard has stated that they only report wash sales for the same fund, not similar funds, an...
by Kevin M
Sun Jan 15, 2012 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help w/ 401k options
Replies: 14
Views: 1326

Re: Help w/ 401k options

... concerned that rebalancing will be complicated with lack of a TSM option and a true total international per the comments above if I decide to abandon the date fund. Since the target date fund consists primarily of the other available funds, it's likely that it doesn't include "true total intern...
by Kevin M
Sat Jan 14, 2012 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: scottrade vs vanguard, which way should i go
Replies: 26
Views: 9960

Re: scottrade vs vanguard, which way should i go

stan1 wrote: Beats me why anyone owns EEM.
As a tax loss harvesting partner with VWO (I know some folks argue that this could be construed as a wash sale, but I won't worry about that unless the IRS comes out with some rulings that support it).

Kevin
by Kevin M
Sat Jan 14, 2012 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with taxable account
Replies: 48
Views: 2700

Re: Help needed with taxable account

To see what Vanguard has on record for unrealized gains and losses, log in, go to Accounts & Activity, and click on the "cost basis" link just under the account title. This will be applicable if you have never sold any of a particular fund, or if you have used the average cost information provided b...
by Kevin M
Fri Jan 13, 2012 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with taxable account
Replies: 48
Views: 2700

Re: Help needed with taxable account

Starting to get the picture I believe. I should move my Ira stock funds into my bond ira funds and move my bonds in taxable accounts into TSM. When I need cash, i sell stocks in taxable account and then transfer bonds in IRA to TSM fund in Ira. this keeps my asset allocation approx. the same. Is th...
by Kevin M
Fri Jan 13, 2012 7:00 pm
Forum: Investing - Theory, News & General
Topic: Net Worth by Age [and plot]
Replies: 152
Views: 11790

Re: Net Worth by Age [and plot]

No, Kevin, I don't see the tabs. That's what I was looking for, but no luck. Good grief, is my software out of date? That's why I retired, I was sick of writing new software to solve the same old problems. :? After clicking the link in the OP, you should see something like this at the bottom of you...
by Kevin M
Fri Jan 13, 2012 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with taxable account
Replies: 48
Views: 2700

Re: Help needed with taxable account

When you need cash from your investments, sell the TSM index fund in taxable no matter what the share price and at the same time buy TSM index fund in your tax-deferred account with the cash that you have there. But if you have a loss on the sale of TSM in your taxable account, you don't want to im...
by Kevin M
Fri Jan 13, 2012 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with taxable account
Replies: 48
Views: 2700

Re: Help needed with taxable account

sieber, you are not understanding the technique described in the wiki article referenced by livesoft. You don't "tap" the tax-deferred account. I'm basically repeating what's in the wiki, but the idea is that you start by holding bonds and cash in tax advantaged, and stocks in taxable. For spending ...
by Kevin M
Fri Jan 13, 2012 3:18 pm
Forum: Investing - Theory, News & General
Topic: Net Worth by Age [and plot]
Replies: 152
Views: 11790

Re: Net Worth by Age [and plot]

How do you see the plot? My numbers went in yesterday, and I happened to see the plot once from the OP link. Today I can only see the data page, with no way to get to the second sheet. BTW, with my entry the age and comment remained today, but the net worth was blank. I put it back. Now, how the he...
by Kevin M
Fri Jan 13, 2012 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Buying electronic I-Bonds in January 2012
Replies: 52
Views: 5679

Re: Buying electronic I-Bonds in January 2012

You can buy $5K of paper I Bonds per person with your tax refund. Kevin Are you sure it's $5k per person ? I thought it was $5k per tax return? Per person makes more sense. I've already made one etra $5k estimated tax payment. I wonder: Am I in time to make another $5k estimated tax payment before ...
by Kevin M
Fri Jan 13, 2012 6:45 am
Forum: Investing - Help with Personal Investments
Topic: New Boglehead and need IRA advice for my mother...
Replies: 10
Views: 713

Re: New Boglehead and need IRA advice for my mother...

You say she trusts you, but wouldn't go with your recommendation to go with Vanguard. I would transfer the IRA to Vanguard and put it in a Target Retirement fund, which will give you a 70/30 split between US and international, and you can pick the fund with whatever stock/bond split you want (from 3...
by Kevin M
Fri Jan 13, 2012 6:17 am
Forum: Investing - Theory, News & General
Topic: Net Worth by Age [and plot]
Replies: 152
Views: 11790

Re: Net Worth by Age [and plot]

So far is shows that younger people are a fairly homogeneous group, so "your age in bonds" works well here. As the X-axis (age) moves out, the Y-axis (net worth) begins to become much more diverse. Thus, "your age in bonds" doesn't apply as easily. Exactly! I talk to others about age in bonds as a ...
by Kevin M
Fri Jan 13, 2012 5:52 am
Forum: Investing - Help with Personal Investments
Topic: Increasing the International portion of our stock allocation
Replies: 11
Views: 1339

Re: Increasing the International portion of our stock alloca

If you have access to it, I would just use a Total Stock market index fund for your US stocks; that will give you market weights of large, mid and small-cap US stocks. I would put about 30% of stocks in a Total International fund (ideally including emerging markets, as Vanguard's Total International...
by Kevin M
Fri Jan 13, 2012 5:33 am
Forum: Investing - Help with Personal Investments
Topic: Switching Vanguard funds within a Roth IRA
Replies: 14
Views: 8897

Re: Switching Vanguard funds within a Roth IRA

Why don't you want to just stick with a Target Retirement fund, with a $1,000 minimum? You don't want 30% in international? 10% in bonds (in the 2050 fund) isn't much (most on this forum would recommend at least 20%). I would stick with a Target Retirement fund. But, if you really want to exchange i...
by Kevin M
Fri Jan 13, 2012 5:24 am
Forum: Investing - Help with Personal Investments
Topic: scottrade vs vanguard, which way should i go
Replies: 26
Views: 9960

Re: scottrade vs vanguard, which way should i go

Open a Roth IRA mutual fund account (not brokerage) at Vanguard and transfer your Roth IRA there. Get electronic statements and pay no annual fee, and pay no fees for buying or selling most mutual funds. Even if scottrade charges a nominal transfer fee (maybe $50), you'll make it up in trading costs...
by Kevin M
Fri Jan 13, 2012 4:56 am
Forum: Investing - Help with Personal Investments
Topic: New Investor - Portfolio Advice Sought
Replies: 3
Views: 508

Re: New Investor - Portfolio Advice Sought

I like your 4 fund plan better, and I think many will agree. You get huge diversification -- basically most stocks in the world -- with Total Stock and Total International. If you want more hedge against market swings, increase your bond allocation. There is little academic evidence (if any) that us...
by Kevin M
Fri Jan 13, 2012 4:44 am
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct - My LLC Can Have an Account, But ...
Replies: 3
Views: 521

Re: Treasury Direct - My LLC Can Have an Account, But ...

Here's the link to one of the threads discussing this:

http://www.bogleheads.org/forum/viewtopic.php?t=77395

The link to the Federal Reserve Bank statement that I was referencing is in that thread, but it no longer links to anything, so maybe they've removed it.

Kevin
by Kevin M
Fri Jan 13, 2012 4:28 am
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct - My LLC Can Have an Account, But ...
Replies: 3
Views: 521

Re: Treasury Direct - My LLC Can Have an Account, But ...

I believe the answer is yes. There have been several other threads discussing this. I have done this for an entity account in the name of my living trust, and trusts are discussed on the same TD page you linked to. Don't have the references handy, but when researching it, I found some clear statemen...
by Kevin M
Fri Jan 13, 2012 4:11 am
Forum: Investing - Theory, News & General
Topic: What cost basis method did you select at Vanguard and why?
Replies: 46
Views: 8066

Re: What cost basis method did you select at Vanguard and wh

SpecID for optimizing Tax Loss Harvesting (TLH) for mutual fund shares purchased starting in 2012 (covered shares). I'm already using SpecId for ETF shares purchased in 2011 (although in the cases so far, FIFO would have worked as well). For noncovered mutual fund shares (bought before 2012), I'll c...
by Kevin M
Thu Jan 12, 2012 7:46 pm
Forum: Personal Consumer Issues
Topic: Livesoft in great form today!
Replies: 24
Views: 3750

Re: Livesoft in great form today!

livesoft wrote: You will enjoy watching this: http://www.youtube.com/watch?v=THNPmhBl-8I
Best laugh of the day! Thanks.
by Kevin M
Thu Jan 12, 2012 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Buying electronic I-Bonds in January 2012
Replies: 52
Views: 5679

Re: Buying electronic I-Bonds in January 2012

HueyLD wrote:Remember it is $5k per SSN and you can do so for all your children, grandchildren and their spouses.
You can also buy up to the limit of TreasuryDirect I Bonds (now $10K) for your living trust, and you can buy $5K of paper I Bonds per person with your tax refund.

Kevin
by Kevin M
Thu Jan 12, 2012 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Buying electronic I-Bonds in January 2012
Replies: 52
Views: 5679

Re: Buying electronic I-Bonds in January 2012

Here's a link to the press release announcing the increased limit:

http://www.treasurydirect.gov/news/pres ... im0112.htm

Kevin
by Kevin M
Wed Jan 11, 2012 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: vanguard aa - advice
Replies: 24
Views: 2286

Re: vanguard aa - advice

One reason to use an ETF is that certain ETFs are much cheaper than their fund counterparts. Admiral Shares of funds tend to be close in cost to their ETF counterparts. However, for a fund like VFSVX that doesn't have Admiral Shares, its ETF (VSS) might be worth the trouble. The fund has a 0.55%, a...
by Kevin M
Wed Jan 11, 2012 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: vanguard aa - advice
Replies: 24
Views: 2286

Re: vanguard aa - advice

Wasn't aware that I can get foreign tax credit. Yes, you can. Foreign governments tax dividends (this is handled by the fund, so you don't see it directly), and you can take a credit on your federal income tax return to offset these taxes. I believe the wiki article on asset location discusses this...